The rising private healthcare spend is one.
The rising affluence of Singaporeans has led to the increase in demand for better private healthcare services and shorter waiting times.
According to a sector report from Maybank Kim Eng, the rising demand is reflected in three things: the higher private healthcare expenditure, the ballooning healthcare expenditure per capita, and the growth in the proportion of private healthcare expenditure in GDP.
"Private healthcare spending per capita has been rising steadily, at a 19-year CAGR of 8% to %1,604 in 2014, from $373 in 1995. The private healthcare expenditure made up c.60% of the total healthcare expenditure," Maybank Kim Eng said.
Meanwhile, the private healthcare spend as part of the GDP has not grown much since 2005 as GDP growth was much higher during the 2005 to 2010 period. The average growth rate for that six-year period was 7%.
"From 2011-2016, the average growth rate was much lower, at 3.6%. The private health expenditure as a % of GDP continued to increase from 2011 to 2014. On the other hand, the public healthcare spend as % of GDP has been increasing quicker as the government has increased healthcare expenditure significantly to serve the rising demand from an aging population," the brokerage firm noted.
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